The rupee drops 20 paise to close at 79.84 against the US dollar

The rupee depreciated 20 paise to close at 79.84 (provisional) against the US dollar on August 19 amid a strengthening greenback overseas.

In the interbank foreign exchange market, the local currency opened at 79.75 and moved in a range of 79.73 to 79.84 during the day.

It eventually ended at 79.84 against the US currency, down 20 paise from its previous close of 79.64.

Forex traders said the U.S. dollar index rallied after comments from U.S. Federal Reserve officials on the scale of rate hikes weighed on investor sentiment.

The dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.18% to 107.67. Foreign outflows from Indian equities also dragged down the local unit.

Foreign institutional investors were net sellers in the capital market on Thursday as they unloaded shares worth ₹1,706.00 crore, according to exchange data.

“The rupiah continued to consolidate in a narrow range following the hawkish minutes of the FOMC meeting,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

A series of U.S. central bank officials have said the Fed must continue to raise borrowing costs to rein in high inflation.

“We expect USD-INR (spot) to trade sideways and range between 79.20-79.80,” Somaiya added. Meanwhile, Brent futures, the global oil benchmark, fell 1.02% to $95.60 a barrel.

On the domestic stock market front, the BSE Sensex ended down 651.85 points or 1.08% at 59,646.15, while the broader NSE Nifty was down 198.05 points or 1.10% at 17,758.45. PTI DRR ABM ABM

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